An innovative rent-to-buy housing scheme founded in Plymouth has become a national sensation and aims to have £1.8billion invested into properties by 2020.

Rentplus is expanding fast and now has housing schemes in Devon, Dorset, Gloucestershire, Northamptonshire, and Cambridgeshire, with projects in Somerset and Essex in the pipeline.

It already has £440million in the bank, cash provided by well-known institutional investors.

And it is looking to have more than 9,000 houses either built, contracted, under offer or in the pipeline by 2020.

That would equate to £1.8billion of properties.

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It’s a huge success story for a company born and still headquarted in Plymouth.

“We have a business plan to deliver up to 5,000 units by the end of 2020,” said Rentplus chief executive Steve Collins. “And our pipeline of schemes identified is more than 9,000 units – £1.8billion of investment.

The firm, which has 30 staff a third of whom are in Plymouth, works with housing associations and the Rentplus model offers the security of five-year renewable tenancies at a rent set at no more than 80 per cent of market rent.

Tenants are given the opportunity to purchase their property after five, 10, 15 or 20 years and are given a 10 per cent gifted deposit from Rentplus to help.

Rentplus has another £120million from a fund it created for other investors.

“This is about meeting the needs of people requiring good quality homes,” said Mr Collins. “We work in partnership with local authorities and housing associations.”

Rentplus’ most recent affordable housing scheme is in Sparkwell.

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The Blacklands Close estate, at Fairway Gardens, is on part of the former Welbeck Manor Sparkwell Golf Course, and was developed by Blue Cedar Homes in partnership with Classic Builders.

Mr Collins said: “Our latest development in the South Hams in partnership with Tamar Housing, Sparkwell Parish and South Hams District Councils, underlines the need for affordable homes in Plymouth and across the South West.”

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Cllr Robert Steer, chairman of the development management committee at South Hams District Council, said: “I have three sons and two had to move away because of the lack of affordable housing in the area.

“The Fairway Gardens scheme is a showcase development that has attracted much interest from local authorities.

“If we are to keep our communities vibrant and sustain our local economy, we’ve got to support our youngsters in building more affordable homes like the Rentplus and Tamar Housing development in Sparkwell.”

Gary Streeter, Tory MP for South West Devon, said: “These affordable homes are giving young people the chance to live in communities they have grown up in. I’m looking forward in seeing more of these Rentplus projects rolled out across the country.”

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